Accounting (IFRS 9)
Implementation of IFRS 9 is a major challenge for Financial Institutions, especially in the area of credit risk with the transition to the expected credit loss model for recording impairments. Classifying Financial Assets optimally to reduce Equity and P/L volatility, and benefiting from the improvements to the Hedge Accounting models requires in-depth knowledge of IFRS 9 & asset management activities.
O2 Finance has 20 years of experience with implementation of accounting change in the area of financial instruments. We have defined solutions with ALM, asset management & treasurers that meet economic and accounting challenges, and have ensured effective & compliant implementation in accounting processes.
For a large Insurer, we conducted analysis of impact of implementation of IFRS 9, in the 3 areas of change, i.e. Classification of Financial assets, Expected Credit Loss and Hedge Accounting. The project was led through workshops with Asset Management, Risk Management and Finance. The analysis enabled identification of key impacts and definition of approach for implementation.
In the second phase of the project, we have assisted the Steering Committee in deciding on the Classification of Financial Assets and in the selection of the key parameters driving the development of the Expected Credit Loss model.